Texas Refinery Is Saudi Foothold in U.S. Market

New York Times ^ | 04 April 2013 | Clifford Krauss

[Lorianne]

PORT ARTHUR, Tex. — It is hard to imagine the desert sands of the Persian Gulf being any farther away than from this swampy refinery port known for Cajun food, sport fishing and being the birthplace of Janis Joplin.

But right in the middle of town stands a strategic outpost for Saudi Arabia’s global ambitions, although one that the Saudis appear loath to publicize.

The giant Motiva oil refinery, which just completed a $10 billion expansion that makes it the largest processor of gasoline, diesel and other petroleum products in the United States, is owned by Saudi Aramco and Royal Dutch Shell in a 50-50 partnership.

Saudi Aramco’s investment in the refinery expansion is meant to ensure that Saudi Arabia will retain an important market for its crude in the United States at a time when American politicians are declaring their intention to wean the country off imported oil. Adding to the urgency for the Saudis is the fact that the United States is vastly increasing its production and replacing OPEC crude with that from oil sands in Canada.

The expansion of the Port Arthur refinery comes during a particularly complicated period in United States-Saudi relations, as the two countries try to manage changes sweeping the Arab world. While Riyadh has cracked down on dissent and generally resisted efforts to spread democracy in the region, the Obama administration has been less resistant to the changes.

[Cen-Tejas]

.....with sincere respect, I disagree. In fact, that is a paradigm re the Saudi’s that continues to victimize us all and threaten our very existence.

Analogy: Say you had a contract with Acme Mega Corporation, the world’s largest corporation, to sell you
FOOD (like oil, an essential) at a bare bargain WHOLESALE price and you (your corporation (Motiva) turned around and sold it NATIONWIDE to a ravenous American people even though they could, if they wanted to, get the food somewhere else with a little effort and substantial short term pain.

Then, you discover, that ACME has started going nuts and supporting Terrorist Groups all over the world that were beheading Americans and killing our soldiers and killing us by the thousands (911)! But, no problem with the food, they, greedy bastards that they are, continue to sell US (American dumbasses by the millions) the food America, and your stockholders, need and want because it is cheap and convenient to buy at Acme’s neighborhood stores (read: gas stations).

So, do you continue to buy food from these people while they kill your sons and behead our citizens while attacking us and killing us by the thousands, and perhaps millions soon!?

I say not and I believe a growing number of Americans are “getting it” and getting on board with me on the point.

Notwithstanding any of the foregoing, I sincerely appreciate your ability to argue your points on FR in a calm and reasoned way. It’s refreshing.

[thackney]

While I agree doing business with Saudi with their support of our enemies isn’t in our best interest, I don’t see significant awareness by the population. I’ll bet 2 years from now we will be doing more, not less, business with them.

I’m glad for the discussion. Hopefully others read and think on it as well.

Cheers!

[Cen-Tejas]

LOL, I think we’ve reached agreement!